The credit data were weak in April. That's certainly in part due to the covid lockdowns, but it doesn't feel like there is enough policy support yet to ensure recovery if and when the virus situation improves.
The Economy Watchers survey was solid in April, which suggests a constructive outlook for the cycle, with perhaps a touch of upside risk compared with the other advanced economies.
There's nothing in the labour market data for April to make the BOK less hawkish.
Food price inflation rose in April, pushing up overall CPI. But core remains subdued, and PPI inflation fell back.
Probably, the all-out approach to beating covid is the government merely repeating the 2020 Wuhan play book rather than giving up on growth. But there are other explanations, and it isn't yet clear where growth will come from this year.
Quite a few warning signs of a real slowdown are now appearing, but Taiwan's exports aren't showing much weakness yet.
Exports declined 6% MoM in April, the biggest fall in any normal month since April 2019. As they did then, the lockdowns probably explain some of the decline, and the leads, while clearly pointing down, don't point to the rate of decline in April being sustained. Still, this is an important data point. Across the region, there's growing indicators of a real export slowdown that will
Overall CPI inflation in Tokyo rose to 2.5% YoY in April. The measure of all items less food, which is the official target for the BOJ, reached 1.9% YoY, which excluding the sales-tax boosted inflation of 2014, was the highest in several decades. A lot of this reflects rising energy prices, a trend which more recently has started to fade. But core CPI (inflation excluding food and energy
For Li Keqiang and his mission impossible to get to 5.5% growth this year, the only silver lining in the very weak April Caixin PMI was that respondents were somewhat positive about the medium-term.
Policy rhetoric is becoming easier, and FCI is easing. But there are two big headwinds to any of this having an impact: investor scepticism, and covid.
The robust growth momentum of the last couple of years hasn't completely disappeared, but the foundations are now definitely looking shakier.
The last BOK monetary policy meeting clearly showed that inflation was front and centre for the bank. Today's inflation data do nothing to change that prioritisation
Consumer confidence managed to improve in April, but just a touch. The optimistic argument would be this is just the beginnings of a more sustained lift as recovery in the services industry from covid finally gets under way.
The export cycle is showing clearer signs of at lest peaking, if not starting to roll over, with headline YoY export growth slowing again in April from 18.2% in March to 12.6%.
The government's view that it is homebuilders not homebuyers who are the "speculators" has big implications for where the property cycle goes next, and what that means for the economy.
It wasn't a surprise that the official PMIs fell sharply in April, but the charts are nonetheless quite dramatic.
Q1 growth was strong. The official leading indicator for March is pointing to a clear slowdown, but more gradually than the path suggested by equities.
The Politburo has gone a step further in supporting the economy, including real estate.
With the procyclicality that is built into YCC, not tightening when inflation is rising elsewhere and other central banks hiking necessitates the BOJ stepping up loosening. And that's exactly what the BOJ did at its monetary policy meeting today.
Korea's April business sentiment survey reaffirms recent themes for the economy. The cycle is now slowing, but not yet weak, and in fact on its own still strong enough to keep the BOK in tightening territory. At the same time inflation risks remain high. The central bank is likely to remain hawkish.
It would be tempting even to describe the labour market situation as goldilocks - except that the BOJ wants inflation to rise, and without that actually happening, the bank will keep policy loose, in turn putting pressure on the JPY to depreciate.
The BOJ's calculation of trimmed mean CPI moved up in March to 1.1% YoY, equal with the previous record high in the series last reached in 2008. The details though were a little soft.
The services PPI doesn't look as perky as some other inflation leads, but does indicate underlying inflation at least remaining around the current 1% for the next 2-3 months.